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What is an Enterprise Performance Management (EPM) solution for companies?

What is an Enterprise Performance Management (EPM) solution for companies?

Enterprise Performance Management (EPM) is a system that integrates and analyses data from different sources with the aim of improving business performance

This software is very useful for both SMEs and large companies, as it allows tracking of any business area (trading systems, front- or back-office applications, external data sources, etc.), and also helps to plan objectives more efficiently.

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Why opt for an EPM Solution?

Enterprise Performance Management (EPM) is commonly used to describe software that deals with the administration tasks of a company and unifies both business management methods and solutions

In recent times there has been an increase in demand for cloud-based EPM software, also called software as a service (SaaS). Here are some of the reasons why it is interesting to adopt EPM in your organisation: 

Financial management

Budgeting, forecasting and financial management can be done through data analysis, forecasting models, etc., enabling companies to better understand their business, make better decisions that drive efficiency and can improve the financial and operational performance of your organisation.

Optimise your business results 

Companies can consolidate their results with the help of EPM. The programme uses data generated from systems, processes and activities across the organisation to identify business drivers, generate new business opportunities, increase profitability and respond with greater agility to unexpected changes.

 

๐Ÿ‘‰ Related article: Implementing the Customer Data Platform (CDP) in your digital transformation

 

The role of EPM for your SME

The purpose of EPM software is to help achieve the strategic goals and objectives of companies. This is why it can benefit SMEs in very different areas, such as:

  • Budgeting , planning, forecasting and modelling.
  • Consolidation of results and periodic closing of the books.
  • Internal and external performance reporting.
  • Performance vs. planning reports, comparatives with previous years, either by divisions or products.
  • Planning and making adjustments when the business does not behave as expected so that the proposed objectives are met within the set timeframe.

In addition to the aforementioned tasks, the use of Enterprise Performance Management can help the different departments of a company (Commercial, HR, Administration, Sales, etc.) to be aligned around the objectives of the organisation.

We must not forget that an EPM includes the monitoring of key performance indicators or KPIs, which allow the heads of the different departments to understand the key market trends and predict future behaviour, so implementing an EPM is very useful in an increasingly unpredictable and volatile business environment.

How do I assess whether my company needs an EPM solution?

To find out, the first step is to examine the reports from our financial applications (Accounting System, Billing and Expenses, Customer Relationship Management, HR, etc.)

If the current structure requires several systems to analyse and evaluate the information that results in various reports, it could be a first sign of the need for an EPM. 

When we are also using only an Excel spreadsheet to evaluate, report and plan our business strategy, it is also a sign of the need for an EPM tool

If we are not being efficient in our internal analysis, it is more than likely that the time and money used to collect, organise and report the results will be excessive. Poor architecture requires a disproportionate level of effort to achieve the expected knowledge.

An inappropriate use of the information handled by the company can also lead us to poor conclusions in our analyses, as well as suffering from a lack of agility to adapt to changes, since understanding the results correctly is what will allow us to promote strategies and plans for the future, no matter how changing the scenario in which we move.

jedox epm
EPM solutions for companies. Source: Unsplash

The main advantages of EPM

These are six of the main advantages of using EPM:

Automation

Automation of planning, reporting and financial consolidation processes , eliminating errors and labour-intensive work.

Time savings

Streamlines management cycles and delivery of results, allowing more time for analysis and strategic work that provides the company with greater added value. 

Integration

It allows integrated planning by unifying company data of all kinds, which will make it easier for us to comply with a strategic plan adapted to our objectives.

Accessibility

Increases the capacity for collaboration between the different departments that make up a company and makes all the information easier to find, favouring communication between teams. 

Agility

Automates manual tasks, speeds up key business processes, and enables better alignment between Finance and Operations departments.

Better decision-making capacity

EPM is based on data generated in other systems, such as ERP, HCM, CRM, among others. Having all this information available for analysis allows operating processes to be controlled and better business decisions to be made.

 

๐Ÿ“š You may be interested: Why cybersecurity is a crucial investment for your SME

 

EPM software application areas 

EPMs are commonly known for their usefulness in managing the financial area and in planning processes in companies, but EPM solutions are also becoming more and more useful for other departments:

Sales

Based on the figures obtained, an EPM program will help the team of this department to restructure its sales funnel to make it more effective, as EPMs allow targets to be continuously monitored and adjusted as real-world results change.

Human resources

The HR department can identify, through EPM, staff needs and estimate payroll expenses ahead of time through predictive models. They can also analyse how well staff are meeting goals through business performance analysis and make decisions related to hiring, payroll and incentives.

Marketing

It gives us an integrated view of all marketing actions that are being carried out at any given moment to make faster decisions. 

This allows campaigns to be adapted more easily, developing, for example, new offers based on the demands that customers express at all times.

Purchasing

The team in this department will be better informed and always updated on the market, being able to react faster to variations in supplier prices, which will save costs and improve productivity.

 

epm tool
Enterprise Performance Management charts. Source: Pexels

EPM application examples in companies

VidaCord

VidaCord is a health centre authorised by the Spanish health authorities for the processing, analysis, cryopreservation and storage of blood and/or umbilical cord stem cells. 

Thanks to the development of the EPM (Enterprise Performance Management) system, VidaCord has optimised the analysis and analytical reporting, the management of all administrative procedures and the issuance of qualified medical reports.

Services and solutions applied: Data Warehouse Engineering, Creation of KPIs for reports, Consulting, Integration Project, Systems Support and Maintenance.

Technology: Custom ERP, Oracle Business Intelligence, Oracle Data Base. 

Lidl 

Lidl needed to have a solid, secure, fast and flexible tool that would allow it to be independent in its management and configuration of the company’s corporate reporting

The implementation of a Enterprise Performance Management solution in the Lidl Spain stores with Jedox has facilitated the automatic preparation of all the reports that Lidl Spain transmits to the corporation. 

This made it possible to consolidate the information from all the areas of the organisation involved in the process (accounting, commercial,…) as well as to analyse the different variables that characterise each report.

Services and solutions applied: Planning and Management

Technology: Customised ERP, Excel, Jedox (business performance management software used for planning, analysis, and reporting in finance and other areas such as sales, human resources, and procurement).

 

๐Ÿ”Ž Read more: The best digital and tech experts for your business

 

SFM

The Municipal Funeral Services Company of Madrid (SFM) is the funeral home that offers the most accumulated experience, with more than 100 years of service to the city of Madrid 

To address its Digital Transformation Plan, SFM adopted an Enterprise Performance Management solution for Business Planning and Management (by Jedox) in the areas of โ€œBudgeting, Forecasting and Reportingโ€. 

Due to the implementation of the EPM tool, SFM has been able to benefit from better customer service, unification of information by reducing investment in time, greater employee productivity, and the integrity, reliability and transparency of its information.

Services and solutions applied: analysis, monitoring and tracking of SFM activity, Unification of information, integration with third-party platforms. 

Technology: custom ERP, Jedox.

Yeeply provides customised EPM solutions

Project management through a good EPM tool has a significant impact on the effectiveness and efficiency of an organisation, by providing it with integrated information on the progress of its project portfolio at all times.

Having the tool, however, is not the only thing that is needed. Before choosing, it is necessary to establish a project management methodology for the organisation, which defines, among other things, what information is going to be reported, how it is going to be done, when, by whom and other conditions of the project management process.

If you need consulting about EPM, at Yeeply we can help you

We will put you in contact with our experts for advice on the areas of your company that need an EPM solution.